PocketSmith

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Contents

Introduction

PocketSmith.com is a website that will enable users to manage their own cash flow and help them to achieve their financial goals.Pocket could let users import their own transactions by live bank feed, file upload, or manual entry. The transactions will be organized based on a email-style. The pocketSmith also provide interactive visuals of users' activities.

Features

PocketSmith.com could help user's in two ways: 1) plan and budget, and 2) record your spending.

History

PocketSmith is founded in June 2008, and are based in New Zealand. Right now, PocketSmith provides its service in more than 172 countries.

PocketSmith has been experienced several huge updates, with these updates, PocketSmith is developing and become more powerful and useful for the users. During 2013, PocketSmith updated its 7 master features, including Budgets, Bank Statements, Personal Summary, Bills & Income, Calendar, Multi-Currency, and Cashflows. All these features help PocketSmith to attract more and more users. Meanwhile, most of banks in North America could support their clients to use the Pocketsmith and link clients' accounts to PocketSmith accounts.

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Plan and Budget

PocketSmith.com has powerful tool to track user's personal cash flow. One way is to forecast user's spending and calculate a forecast cash balance for users. The process is based on user's plan on what user would like to spend and earn in a Calendar, and then the user inputs the data in Calendar. Then, PocketSmith will output a monthly-budget calendar inside the Calendar function. The Calendar contains 3 main components: 1) Forecast income and expense are recorded on regular. People usually has a regular life, and conduct similar things everyday, which means the spending habit could be recorded based on the user's consuming behaviors. 2) Forecast income and expense are displayed in categories. In daily life, the user could has his/her income, which could be treated as salaries, tips, invest income, or others, meanwhile, all his/her expense could also be categorized by the spending purposes, such as food, drink, gasoline, and entertainment. With these categories, the user could easily track their cash inflow and outflow on a forecast basis. 3) Forecast remaining balance was display on daily basis. In the Calendar, the forecast balance is calculated by add the daily income and minus the daily expense. User could set a personal financial goal by set the amount of saving, and the Calender will give user how long he/she could achieve financial goal.

Before user could create his/her own Calendar, the user need to set up income/expense categories first. In the Categories column, the user need to input categories data based on his/her consuming behavior. The calendar events are the time between two same income/expense incurred, which could be set as every 7 days, only workday, or only weekends.

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Record Your Spending

Another unique feature that could help user to prepare the cash flow statements is recording user's spending. The process is based on the expense that the user has spent during past, and splitting the expense into different merchants. In other word, the expense here is no longer tie to the categories, but to the merchants, which could help user to analyze how his/her cash was spent in the past. In the Bank Statements column, the user could see his/her transaction history directly. Before the user create the transaction statement, the user need to set up his/her bank account. There are two ways to set the beginning bank account: 1) link user's bank account to a PocketSmith account, which is more convenient for new users; 2) create an account manually, which is more complicated because the users need to create the merchants list before allocating the expense to these merchants.

This feature's main purpose is to record the user's transaction history, which is totally different from the forecasting feature. Based on the recording process, the user could analyze his weekly and monthly cash statement. In the meanwhile, all these cash flow transactions would be recorded and displayed on the Personal Summary column and Cashflows column.

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Business Opportunities

Basically, PocketSmith was designed to meet personal usage, but it could be used for small business and departments inside the company for bugetting. Based on its forecasting feature, small business could set budget in the Calendar, and split its expense to different categories. The management could easily watch the forecast ending balance each day and each month. Besides this, the management could set a PocketSmith to control the cash balance and bank accounts by monitoring the changes of balance and the transactions histories.

However, PocketSmith also has some disadvantages for business usage. In most cases, the account-setting is more complicated than personal usage, if the company need to split its expense into too many categories, it will cost a lot of time. And also, most of the companies choose to record their transactions on accrual basis, while PocketSmith is mainly designed for cash basis. Last, for business usage, the company need to record some expense, which will not cause the changes of cash balance.

References

http://wiki.pocketsmith.com/Introduction http://www.pocketsmith.com http://www.youtube.com/watch?v=Ltxh63B2YDk